Globalization is not trading on cheap labor like most people think. Because production automation is a century old. Cigarette production has always been the most advanced production equipment than textile and flour mill of grains.
Then, people think globalization is trading on technology, which is not what standards of living demand. Most underdeveloped country had meager standards of living. Some like India don't even have clothing on the backs of their people.
So, globalization is jobs creation, building infrastructure to raise the standards of living. It works better and faster in communist countries, where government can print money faster to share wealth, evenly. Venezuela is working towards deep socialism to modernize their standard of living, by nationalizing modern industries. Then they will privatize them for citizen ownership? As example, developed in China and Russia today? England and France did it in the 1960s and 1970s; Germany did the steel mills in 1990s?
It is only because of labor saving devices that globalization methodology will work. Labor cost goes up with standards of living. And only mechanization can help globalization of higher standards of living.
So, China and Russia can build their economy faster than India, internally. India being capitalist can not have a huge welfare system to feed the poor. GE has to do it, but how much GE can do? Pitifully small. Immelt better work on improving standards of living in India by GE products and services, and he will get better success with GE's globalization business. We work on privatizing communist countries and their government owned business to build wealth for their citizens(the true globalization target)? |
